NECO SSCE - Commerce - 2004 (Objective)

Question 1 Report

Under utmost good faith as an insurance principle, a person must

believe in the sincerity of the insurance company

communicate with the insurance company

disclose all material facts to the insurance company Correct answer

have utmost personality

pay outstanding premium

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspects Of Business

Legal Aspect Of Business

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Question 2 Report

The concept that the satisfaction of the consumer's wants is to be emphasized at all stages of production and distribution is known as consumer...........

autonomy

. independence

preferential

production

sovereignty Correct answer

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Occupation (JAMB)

Trade

Occupation

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Question 3 Report

Who among the following assess goods on arrival at a port?

Agent

Customs Correct answer

Importer

Shipping company

Ship owner

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 4 Report

Trade may be defined as

buying and selling of goods

buying and selling of goods and services Correct answer

distribution goods

production of goods

selling of goods and services

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Commerce (JAMB)

Trade

Commerce

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Question 5 Report

A business person who contracts to sell shares in the expectation of a fall in price is a

bear Correct answer

broker

bull

jobber

speculator

Answer Details

Read lesson note on Stock Exchange (JAMB)

Stock Exchange

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Question 6 Report

Which of the following best describes span of control

Directors in an organisation

Financial controllers within an organisation

Shareholders in a company

Subordinates that an executive supervises Correct answer

Subordinates who can work on their own

Answer Details

Read lesson note on Occupation (JAMB)

Occupation

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Question 7 Report

Which of the following is NOT an importance of warehousing?

Ensures that unexpected fluctuation in consumer’s needs are met through reserves

Gives a feeling of security to the traders

Protects goods against pilfering

Provides for economy of scale by maintaining steady rate of production

Provides protection and security for goods or products from going bad Correct answer

Answer Details

Read lesson note on Transport, Tourism, Communication And Warehousing (WAEC)

Read lesson note on Production (WAEC)

Read lesson note on Commerce (JAMB)

Transport, Tourism, Communication And Warehousing

Production

Commerce

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Question 8 Report

The organisation of petroleum exporting countries (OPEC) is an example of a/n......

amalgamation

cartel Correct answer

consortium

holding company

merger

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Commerce (JAMB)

Read lesson note on Trade Associations (JAMB)

Trade

Commerce

Trade Associations

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Question 9 Report

Short-term loan to expand a business is provided by

building societies

central bank

commercial banks Correct answer

cooperative societies

mortgage banks

Answer Details

Read lesson note on Financing Business (JAMB)

Financing Business

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Question 10 Report

In international trade, ...... is used to show the exact country where the goods are imported.

bill of lading

certificate of origin Correct answer

consular invoice

dock receipt

shipping note

Answer Details

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Question 11 Report

Which of the following is NOT part of the documents to be submitted for the registration of companies?

A statement of nominal capital

A statutory declaration signed by a solicitor

Articles of Association

Memorandum of Association

The balance sheet of the company Correct answer

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Legal Aspects Of Business

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Question 12 Report

A credit note is used to

inform the buyer that he can buy more goods on credit

inform the buyer that his account has been credited Correct answer

inform the customer about his state of solvency

tell the customer that his account is in red

warn the customer that his debt is over due

Answer Details

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Question 13 Report

The prospectus of a company must include

names and addresses of management staff

the certificate of incorporation Correct answer

the directors remuneration

the value of annual dividend

types of shares available and their cost

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Commerce (JAMB)

Legal Aspects Of Business

Commerce

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Question 14 Report

A 'duty bill' is used to indicate whether the goods arriving a port are........

being awaited

clean

damaged Correct answer

delivered

on transit

Answer Details

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Question 15 Report

The major divisions of commerce are

buying and selling

export and import

foreign and home

trade and aids to trade Correct answer

wholesale and retail

Answer Details

Read lesson note on Commerce (JAMB)

Read lesson note on Production (JAMB)

Commerce

Production

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Question 16 Report

A voluntary body formed by members of a particular branch of trade or industry to represent interest of members is known as

chambers of commerce

cooperative society

trade association Correct answer

trade commissions

trade union

Answer Details

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Question 17 Report

The drawer of a cheque is usually the

banker

creditor

debtor Correct answer

payee

presenter

Answer Details

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Question 18 Report

Which of the following is a non-insurable risk

Cash-in-transits

Consequential loss

Fire

Home accidents

Speculative venture Correct answer

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspects Of Business

Legal Aspect Of Business

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Question 19 Report

Business transactions are usually based upon agreements known as

confidence

contract Correct answer

good-will

proposal

understanding

Answer Details

Read lesson note on Occupation (JAMB)

Occupation

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Question 20 Report

At an auction sale, an auctioneer acts as a/an..........

agent Correct answer

attorney

broker

principal

representative

Answer Details

Read lesson note on Occupation (JAMB)

Occupation

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Question 21 Report

Which of the following is NOT a function of the central bank?

Banker's bank

Government's bank

Lender of last resort

Printing of currency Correct answer

Servicing of National debt

Answer Details

Read lesson note on Business Environment And Social Responsibility (JAMB)

Business Environment And Social Responsibility

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Question 22 Report

Goods are given utility by

changing their forms and location

consuming them Correct answer

costing their value

numbering and counting them

packing and measuring them

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

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Question 23 Report

The term “enterprise” denotes the ability to

bear risk

control other factors of production

maximize profit

organize other factors of production Correct answer

plan for other factors of production

Answer Details

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Question 24 Report

Profit in partnership is shared according to

agreement in the deed Correct answer

amount contributed by each partner

number of hours put in by each partner

seniority of partner

types of partners

Answer Details

Read lesson note on Business Capital And Profits (WAEC)

Business Capital And Profits

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Question 25 Report

All are aids to Trade EXCEPT

advertising

banking

retailing Correct answer

transportation

warehousing

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Occupation (JAMB)

Read lesson note on Aids-to-Trade (JAMB)

Trade

Purchase And Sale Of Goods

Occupation

Aids-to-Trade

View Answer

Question 26 Report

Department stores are usually located in

areas free from traffic jam

areas where low income earners live

city centres Correct answer

low rental areas

suburban town

Answer Details

Read lesson note on Financing Business (JAMB)

Read lesson note on Commerce (JAMB)

Financing Business

Commerce

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Question 27 Report

The last link in the chain of distribution is the

consumer Correct answer

manufacturer

producer

retailer

wholesaler

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Production (JAMB)

Read lesson note on Occupation (JAMB)

Purchase And Sale Of Goods

Production

Occupation

View Answer

Question 28 Report

All these are instruments of consumer protection EXCEPT

Bill of Exchange Act of 1882 Correct answer

Food and Drug Department of Ministry Health

Sale of Goods Act of 1979

Standard Organization of Nigeria

Trade Description Act of 1968

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 29 Report

An industry whose major actors consists of those engaged in sourcing raw materials from the earth surface is known as .... industry.

commercial

construction

extractive Correct answer

manufacturing

mining

Answer Details

Read lesson note on Production (WAEC)

Production

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Question 30 Report

The services offered by the following people .could be grouped under direct services. EXCEPT

doctors

entertainers Correct answer

lawyers

policemen

teachers

Answer Details

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Question 31 Report

A bill of lading is best described as the

certificate of quality of goods

certificate of value for the goods on board

document of title to the goods on board a ship Correct answer

document showing where the goods are going to

evidence of payment of custom duties

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

View Answer

Question 32 Report

The insurance policy that specifically covers damage to structure or machinery of a ship is known as.......insurance.

cargo

hull Correct answer

marine

ship owners

time

Answer Details

Read lesson note on Commerce (JAMB)

Commerce

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Question 33 Report

Which of the following documents shows a summary of a complete sale which the supplier sends to the buyer?

Credit note

Debit note

Delivery note Correct answer

Invoice

Quotation

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Purchase And Sale Of Goods

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Question 34 Report

The excess value of all the assets of a business over the value of its liabilities is called

capital employed

capital owned Correct answer

circulating capital

loan capital

share capital

Answer Details

Read lesson note on Business Capital And Profits (WAEC)

Business Capital And Profits

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Question 35 Report

Credit in business transaction is a. ......

compliment to a good customer

form of loan Correct answer

means of saving money

prepayment by customers

rebate for large purchases

Answer Details

Read lesson note on Commerce (JAMB)

Commerce

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Question 36 Report

A receipt is a/an

acknowledgement of money received Correct answer

credit instrument

list of goods received

list of goods to be supplied

order for the goods to be purchased

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

View Answer

Question 37 Report

One way of restricting the quantity of goods which may be imported into a country is by

balance of payment

dumping

quotas Correct answer

tariff

terms of trade

Answer Details

Read lesson note on Trade (WAEC)

Read lesson note on Commerce (JAMB)

Trade

Commerce

View Answer

Question 38 Report

Kate insured her fancy store for losses arising from burglary. The store was later burnt down. Which insurance principle denied her compensation?

Contribution

indemnity

Proxirnate cause Correct answer

Subrogation

Utmost good faith

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 39 Report

When manufacturers sell directly to consumers they have eliminated

advertising agents

brokers

middleman Correct answer

retailers only

wholesalers

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Commerce (JAMB)

Purchase And Sale Of Goods

Commerce

View Answer

Question 40 Report

Brand name is used to

differentiate one’s goods with others Correct answer

make business much easier

make selling more convenient

package products

Standardize goods

Answer Details

Read lesson note on Purchase And Sale Of Goods (JAMB)

Read lesson note on Aids-to-Trade (JAMB)

Purchase And Sale Of Goods

Aids-to-Trade

View Answer

Question 41 Report

In a private limited liability company shares can be transferred

at the end of a financial year

by applying to the registrar of companies

without consulting other shareholders

with the consent to other shareholders Correct answer

with the consent of the managing director

Answer Details

Read lesson note on Legal Aspects Of Business (JAMB)

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspects Of Business

Legal Aspect Of Business

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Question 42 Report

The full amount of capital which a company is authorized to raise is stated in the

articles of association

certificate of incorporation

certificate of trading

memorandum of association Correct answer

share certificate

Answer Details

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Question 43 Report

The value of money is measured by the

amount of goods and services a unit of it can purchase Correct answer

amount of its unit people can hold

. ease at which people can spend a unit of it

quantity of it in circulation

rate of national development

Answer Details

Read lesson note on Money (JAMB)

Money

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Question 44 Report

The right to retain possession of property of another until certain legitimate demands are satisfied is known as

agency

guarantee

lien Correct answer

patent

Answer Details

Read lesson note on Legal Aspect Of Business (WAEC)

Legal Aspect Of Business

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Question 45 Report

Equity of a company is another name for....... shares.

cumulative preference

founders

ordinary Correct answer

preference

redeemable preference

Answer Details

Read lesson note on Business Capital And Profits (WAEC)

Read lesson note on Stock Exchange (JAMB)

Business Capital And Profits

Stock Exchange

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Question 46 Report

The creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them is known as

advertising

distributing

marketing Correct answer

planning

trading

Answer Details

Read lesson note on Elements Of Business Management (JAMB)

Read lesson note on Trade Associations (WAEC)

Read lesson note on Elements Of Marketing (JAMB)

Elements Of Business Management

Trade Associations

Elements Of Marketing